HOUSTON--Oct. 23, 2002--Consolidated Graphics, Inc. today announced results for its second quarter ended September 30, 2002.
Revenues in the September quarter were $181.8 million compared with $176.1 million in the June quarter and $160.2 million a year ago. Net income for the quarter was $5.4 million, or $.40 per diluted share, compared with $5.1 million, or $.37 per diluted share, in the June quarter and $4.3 million, or $.32 per diluted share, including after-tax goodwill amortization expense of $1.2 million, or $.09 per diluted share, a year ago.
For the six months ended September 30, 2002, total revenues were $357.9 million compared to $324.6 million for the comparable period a year ago. Net income for the first half of this fiscal year, before the cumulative effect of a change in accounting principle reflecting the adoption of SFAS No. 142, was $10.4 million, or $.77 per diluted share, compared to $9.4 million, or $.70 per diluted share, including after-tax goodwill amortization expense of $2.3 million, or $.17 per diluted share, in the same period last year. After giving effect to an after-tax goodwill impairment charge of $74.4 million, or $5.50 per diluted share, due to the implementation of SFAS No. 142, the Company reported a loss of $63.9 million, or $4.73 per diluted share, in the first half of this fiscal year.
"We are pleased to report a record September quarter," commented Joe R. Davis, Chairman and Chief Executive Officer. "During the quarter, revenue grew to $181.8 million, the highest level for any quarter in the Company's history. This quarter's strong revenue performance was a result of year-over-year internal sales growth of 3.5% and contributions from recent acquisitions."
Mr. Davis stated, "We note that last year's September quarter was greatly influenced by the tragic events of September 11th, therefore partially affecting the comparables for this year's second quarter. Nevertheless, Consolidated Graphics continues to gain market share and make significant progress toward generating sustained top- and bottom-line improvement."
Mr. Davis continued, "We are also pleased that we maintained sequential operating margins at 6.3% in the second quarter of 2003. While operating margins remain down from prior year levels, we believe our results this quarter indicate that market conditions may have bottomed. We remain cautious, however, about the timing of any improvement in current economic and market conditions. For the December quarter, we expect a slight sequential decline in sales due to normal seasonality, while maintaining operating margins in line with the September quarter. We expect the bottom-line to benefit slightly from lower interest expense. As a result, we expect earnings in the December quarter to be approximately in line with our September quarter."
Mr. Davis concluded, "At Consolidated Graphics, we remain focused on growing market share, managing costs, and taking advantage of strategic acquisition opportunities. We have the strongest balance sheet in the industry, and we continue to position the Company for long-term growth in sales and profits."